SYY · 10-Q · 2026Q3 · Full report

Other Income (Expense), Net

SYSCO CORP · 2026-11-04 · Importance 59 · Surprise 82

Other income increased $259 million year over year, and the first quarter of fiscal 2027 recorded $231 million of other income compared with $28 million of expense in fiscal 2026. The principal driver was a $234 million gain on deal-contingent rate-lock transactions entered into to mitigate interest-rate risk on permanent debt for the JRD acquisition. Sysco also recognized net foreign-exchange gains in fiscal 2027, compared with net foreign-exchange losses in fiscal 2026. The rate-lock gain and related acquisition items were excluded from adjusted results as Certain Items.

Key facts

• Sysco net earnings increased 10.5%, or $50 million, to $526 million in the first quarter of fiscal 2027, primarily because of deal-contingent rate lock gains, partially offset by bridge-loan debt issuance cost amortization. source
• Interest income on Sysco’s invested bond and equity financing proceeds is recorded in Other expense (income), net; most interest income between financing and acquisition closing will be Certain Items, except interest income on common-stock offering proceeds. source
• Sysco other income increased $259 million in the first quarter of fiscal 2027, primarily because of deal-contingent rate lock gains; Sysco also recognized net foreign-exchange gains, compared with net foreign-exchange losses in the prior-year quarter. source